NASD Unwraps 529 Buying Guides

September 13, 2004 ( - Those looking to invest in a 529 college savings plan now have a new reference tool, courtesy of the financial services regulator NASD.

A NASD news release said the organization has issued a new  Investor Alert  to help investors sort through the wide range of plans available, compare competing plans and make an educated choice about which 529 plan best suits their needs.

The new NASD offering also provides a comprehensive review of 529 plan state tax breaks – currently offered by 25 states and the District of Columbia – as well as advice for comparing plan fees and expenses.

“The good news is that there’s no shortage of plans available – every state offers at least one 529 plan, and there are currently more than 80 college savings plans to choose from,” said NASD Vice Chairman Mary Schapiro.   “But no two plans are the same. Fees and expenses vary greatly, and high fees and expenses can cut significantly into your returns, so you have to choose carefully.”